Countries back global minimum corporate tax of 15%, Europe News & Top Stories

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PARIS (REUTERS) – Most of the countries negotiating a global overhaul of cross-border taxation of multinationals have backed plans for new rules on where companies are taxed and a tax rate of at least 15 per cent, they said on Thursday (July 1) after two days of talks.

“A detailed implementation plan together with remaining issues will be finalised by October 2021,” read a statement signed by 130 out of 139 countries and jurisdictions involved in the negotiations.

The Paris-based Organisation for Economic Cooperation and Development, which hosted the talks, said a global minimum corporate income tax of at least 15 per cent could yield around US$150 billion (S$200 billion) in additional global tax revenues annually.

It added that new rules on where the biggest multinationals are taxed would see taxing rights on more than US$100 billion of profits shifted to countries where the profits are earned.

The agreement will to Group of 20 finance ministers for endorsement at a meeting in Venice next week.